Beaver County zinc plant closing, 'cracker' plans uncertain

Horsehead Corp. has filed a 60-day notice with the state, warning workers of layoffs as it plans to begin closing a zinc smelter in western Pennsylvania by year's end.

The move was expected as the plant in Potter Township could become the site of a new $2.5 billion petrochemical "cracker" plant that Shell Oil Co. has said it may build on the site about 25 miles northwest of Pittsburgh.

Still, the closing is tough news for the plant's nearly 500 hourly employees who don't expect to be hired by Shell and most of whom won't be moving to a new $450 million Horsehead zinc plant set to open in Mooresboro, N.C., by year's end. That plant, which will employ about 250 people, is being built to replace the western Pennsylvania factory.

Archie Robinson, who lives less than a mile from the plant and has worked there eight years, said workers were hopeful when they heard of Shell's plans saying they initially thought it would bring jobs.

"There's not even a whisper of any of the Horsehead employees working for Shell. Not even a whisper of that," Robinson told the Beaver County Times, which first reported the layoff notice announced Wednesday and submitted Thursday to the state Department of Labor and Industry.

Horsehead spokesman Ali Alavi said the notice doesn't mean the plant will completely shut down by Dec. 31. Rather, workers will start to be laid off then as the company begins shutting it down.

"We're still evaluating various shutdown scenarios, but we do expect that to start near the end of the year," Alavi said.

Meanwhile, Shell's plans aren't certain. Shell signed another six-month extension of an option to buy the plant property on July 1.

The plant would convert ethane from Marcellus Shale natural gas into more profitable chemicals such as ethylene, which is used to make plastics, antifreeze and other products.

Some local taxing bodies, including Potter Township, have approved tax incentive deals and, along with Gov. Tom Corbett, have said they expect Shell to make a decision about the ethane cracker plant early next year.

Shell spokesman Michael Marr wouldn't comment, saying the company is in a news blackout as it nears its quarterly earnings announcement.